Report calls on Government to make UK infrastructure more investable

(by Karma Loveday)

Ensuring a stable regulatory environment, faster decision-making and deploying proven revenue and risk-sharing models are all factors that would give greater confidence to investors in multi-decade projects in the UK.

That’s according to a report from TheCityUK – the body representing UK-based financial and related professional services – and law firm Freshfields. This sets out practical steps to make projects more investable, which in turn will help crowd in long-term capital to support growth and jobs. The authors note that this will be essential in helping to fill the approximate £345bn funding gap highlighted in the 10 Year Infrastructure Strategy.

Bridging the infrastructure funding gap: attracting private capital to deliver the UK infrastructure strategy and exporting innovative financing solutions advised the Government to:

• Deliver stable and predictable regulatory frameworks for major projects, which minimise unnecessary complexity and are developed early.

• Continue targeted strategic government support to unlock nationally significant projects.

• Ensure predictable long-term revenue streams, hedged against inflation.

• Provide clarity on ministerial responsibility and accountability for infrastructure and major project delivery.

The report also argued that the UK’s status as a global financial, legal and risk management hub provides the country with an opportunity to export its expertise globally, particularly to emerging and developed economies seeking advanced solutions to support their infrastructure development.